Shares tumble after extended rally

Shares tumbled on Ho Chi Minh City Exchange on June 16 after increasing for five days straight on a low-pace trading.

The VN-Index dropped 2.11 points, or as much as 0.37 percent to land at 572.37 points although receiving supports from large-cap stocks with the VN30-Index, tracking the performance of the southern bourse's 30 top stocks by capitalisation and liquidity, adding 0.14 percent to 618.62 points.

The VN30-Index was supported by Masan Group (MSN) which rose by 1 percent, Vingroup (VIC) adding 0.77 percent and Sacombank (STB) gaining 1.94 percent.

Shares of gas sector posted losses on June 16, such as PetroVietnam Transportation Corporation (PVT), PetroVietnam Low Pressure Gas Distribution (PGD) and PetroVietnam General Services Corporation (PET) which dropped respectively by 4.65 percent, 2.23 percent and 1.85 percent.

The huge loss of PetroVietnam Gas Corporation (GAS) by 1.94 percent on June 16 was a major factor dragging down the benchmark index.

Trading was at a low pace with both sellers and buyers in a cautious psychology.

The trading volume and value slightly improved over June 13, with nearly 87.6 million shares changing hands, worth 1.48 trillion VND (70.4 million USD).

Stocks of the property sectors were active on June 16.

Real estate Hoang Quan Corporation (HQC) lead by trading volume with 7.25 million shares changing hands, rising by 5.7 percent to its ceiling price of 7,400 VND (0.35 USD) a share.

On Hanoi Exchange, the HNX-Index ended 0.34 percent lower at 76.42 points while the HNXFF-Index, composed of stocks with minimum free float rate of 5 percent, lost 0.28 percent to 76.94 points.

Tracking the 30 largest stocks, the HNX30-Index ended 0.37 percent lower at 152.93 points.

With more than 40.5 million shares changing hands, the total trading value reached 412 billion VND (19.6 million USD).

On the Ho Chi Minh Stock Exchange, foreign investors concluded as net buyers of 15.25 billion VND (726,100 USD) shares on June 16, after a slight net buying on June 13.

STB was the most heavily-traded stock by foreign investors. Market Vector Vietnam ETF recently announced to increase the percentage of STB in its porfolio from 4.26 percent to 8 percent and the fund would purchase nearly 20 million shares of STB during this week.

Foreign investors purchased a net value of 15.26 billion VND (726,600 USD) on the northern bourse.

Vietnam Investment Securities said that losses on June 16 occurred partly due to due to profit booking by several investors.

Stock analysts forecast that the market would continue to post slight losses in several coming trading sessions as the VN-Index struggled to approach the resistance band of 580 points.

FPT Securities urged investors to keep a close watch on the review of exchange-traded funds' portfolios due this week when making investment decisions.-VNA

Source: Vietnamplus

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